Ansteel Shares to reduce losses by 3 billion yuan in 2025

Steel supply exceeds demand.

On March 30, Ansteel Co., Ltd. (000898.SZ) released its 2025 annual report.

During the reporting period, facing a complex operating environment with demand pressure in the steel industry, fluctuations in raw material prices, and intensified industry competition, Ansteel achieved a total operating revenue of 96.05B yuan, a net loss attributable to shareholders of 4.07B yuan, narrowing from a loss of 7.12B yuan in 2024 by 42.88%, and the net cash flow from operating activities turned positive.

The recovery of gross profit margin is one of the reasons for Ansteel’s reduced net loss. In 2025, the gross profit margin of the company’s steel rolling processing industry was -1.28%, an increase of 2.3 percentage points year-on-year. Among them, the gross profit margins of hot-rolled thin plates, cold-rolled thin plates, and medium-thick plates all saw varying degrees of recovery.

Additionally, the company stated that by optimizing procurement radius, focusing on system cost reduction, and implementing refined control over procurement, production, and logistics processes, the total operating cost during the reporting period decreased by 10.41% year-on-year, from 108.83B yuan to 97.26B yuan, with a cost reduction exceeding the revenue decline.

While optimizing costs, Ansteel’s cash flow and expense management also improved. In 2025, the net cash flow from operating activities reached 1.79B yuan, turning positive from -787 million yuan in 2024. On the expense side, the company’s selling expenses and management expenses decreased by 4.64% and 18.15% respectively year-on-year, maintaining stable R&D investment while controlling costs.

Looking ahead to 2026, the steel industry is generally in a downward cycle, compounded by fluctuations in raw material prices such as iron ore and coking coal, with overall profitability continuing to be under pressure. Ansteel stated in its annual report that the industry will still face a complex and severe internal and external environment. On the macro demand front, the recovery of the domestic real estate market is uncertain, infrastructure and manufacturing steel demand growth is slowing, and overall steel demand is weak. In terms of market competition, overcapacity remains a concern, with intensified homogeneous competition and continued compression of product profit margins.